'Timef Incident' Gu Young-bae, Ryu Kwang-jin, Ryu Hwa-hyun Deny Charges in First Trial

Gu Young-bae, CEO of Qoo10 Group, Ryu Kwang-jin, CEO of TMON, and Ryu Hwa-hyun, CEO of WEMAKEPRICE, who were indicted on charges related to the large-scale unsettled payment scandal of 'TMEF' (TMON·WEMAKEPRICE), all denied the charges at the first trial.

Koo Young-bae, CEO of Qoo10 Group (from left), Ryu Kwang-jin, CEO of TMON, Ryu Hwa-hyun, CEO of WEMAKEPRICE. Yonhap News

The Seoul Central District Court Criminal Division 24 (Presiding Judge Lee Young-sun) held the first trial on the 8th for 10 related persons, including CEO Gu, who were indicted on charges of violating the Act on the Aggravated Punishment of Specific Economic Crimes (breach of trust) and others.

CEO Gu's side stated, "The actions were taken based on business judgments during company operations, and the defendant neither desired nor anticipated the resulting consequences," adding, "It is questionable whether such actions can be evaluated as criminal liability such as embezzlement or breach of trust." They further said, "We deny the charges on the grounds that a thorough review of the facts and legal aspects is necessary."

The representatives of Ryu Kwang-jin and Ryu Hwa-hyun also denied all charges. Ryu Kwang-jin's side argued, "It is inappropriate to hold the defendant liable for the charges stated by the prosecution simply because they held the position of CEO of TMON and merely performed their duties in the incident led by CEO Gu." Ryu Hwa-hyun's side denied the charges, stating, "Most of the alleged acts occurred and were concluded before the defendant became CEO."

Additionally, seven executives, including Kim Dong-sik, CEO of Interpark Commerce, Kim Hyo-jong, CEO of Qoo10 Korea, and Lee Si-jun, CFO of Qoo10 Korea, who were also brought to trial, all denied the charges.

CEO Gu is accused of conspiring with CEOs Ryu Hwa-hyun and Ryu Kwang-jin to embezzle approximately 1.85 trillion KRW in unsettled payments to sellers of TMON and WEMAKEPRICE (fraud), and embezzling over 100 billion KRW from affiliates such as TMON and WEMAKEPRICE under the pretext of loans or consulting fees. He is also charged with breach of trust for causing a total loss of 72.7 billion KRW to TMON, WEMAKEPRICE, and Interpark Commerce by funneling affiliate work to the logistics subsidiary Qxpress for its NASDAQ listing.

The next trial is scheduled for 2 p.m. on the 22nd. On that day, the court plans to hear the positions and defense plans of both the prosecution and the defendants through presentations (PT).